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    EUR/USD's decline halted at 100-day SMA

    © Dukascopy Bank SA
    "The Fed will hike in September. This is still earlier than what is currently priced in the market although today's strong report resulted in a sell-off in US fixed income markets."
    - Rabobank (based on WBP Online)

    Pair's Outlook
    Initially, the EUR/USD cross was provided with some bearish momentum by the long-term downtrend at 1.1315. However, strong US payrolls triggered further weakness of the pair. Losses have only been capped by a dense cluster of supports around 1.1070, with 100-day SMA playing the leading role in stopping the Euro from falling. At the moment the pair is required to close below 1.1065 in order change the near term outlook back to the bearish one. 

    Traders' Sentiment
    The gap between long and short positions at the SWFX market narrowed slightly over the weekend, as bulls are holding 47% of all opened positions. Orders to buy the Euro against the US Dollar in 100-pip range from the spot price plunged by 16% to 40%.

    © Dukascopy Bank SA

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